More pain for govt, Sistema may scale back

In a move that is bound to hit the government’s revenue from spectrum auction, Sistema Shyam Teleservices Ltd (SSTL), the sole applicant for the 2G spectrum auction next week, may not bid for all 11 circles for which it submitted applications.

Sources familiar with the development said that the company may acquire spectrum in only seven circles.

SSTL has filed application for 800 MHz band, which is used to provide CDMA-based services. The company was issued licences in 21 circles in 2008.

However, it applied for licences in only 11 circles this time.

The company had recently announced stoppage of services in the 10 circles where it did not apply for new licences.

If SSTL will operate in only seven circles, it will put further pressure on the government’s revenues from spectrum sale.

The exact amount that the government receives will depend on the category of circles for which the SSTL finally bids.

There are no takers for spectrum in 1,800 MHz and 900 MHz band for the second round of spectrum auction, to be held on March 11.

In the budget, the government has revised down its earnings from communication services from Rs.58,217.3 crore to Rs.19,440 crore for 2012-2013.